AP U.S. History The Rise of the Industrial U.S.

Welcome back to www.educator.com.0000

This lesson is on the rise of the industrial U.S.0003

In this lesson, we are going to focus on the railroad business and talk about some of their sketchy business practices,0007

cutthroat competition, monopolistic practices.0016

We are going to see how wealthy a lot of these railroad tycoons become.0022

And in many ways, that is going to cause a lot of resentment, specially,0027

for the workers who are exploited by the owners of these very profitable companies.0030

Along those same lines, we are going to talk about the expansion of industrial capitalism during what becomes known as the Gilded Age,0039

during the time of the laissez-faire capitalism, where there is very little to no regulation,0046

in terms governmental oversight of monopolistic practices.0058

Some of the major industries that are going to become very profitable and successful would be steel, oil, railroad business.0065

Inventions will be created, different machines will be used as well, and investment banking will help to fund all of these business ventures.0076

A special focus will be on the oil and the steel industries, and the importance of people like Rockefeller and Carnegie.0088

Then, we will also talk about the initial effort by the Federal government to start cracking down on a lot of monopolistic practices.0097

We will see the antitrust movement starting to emerge.0109

And this of course is very much tied into this theme, laissez-faire capitalism.0113

And then of course, we are going to see eventually people will get fed up with the exploitation of the labor force0118

In one of the following lessons we will actually get into the labor movement0127

and see how they start to demand for more regulations and better conditions.0134

Technology inventions are invented during this time, very important, will help facilitate development in industrial capitalism.0139

And of course, we will touch upon discontentment but we would not go into major detail in this particular lesson.0148

In many ways, during the post Civil, post Reconstruction era, we are going to see huge industrialization take place across the United States.0159

And oftentimes, it is considered to be the age of steel because steel is going to be a major game changer.0170

It is going to help to industrialize and literally help build U.S. cities.0177

Skyscrapers, railroads, bridges, all of these types of infrastructure examples are going to be built literally by steel.0186

Steel is extremely important.0198

Early factories produce consumer goods and then gradually capital goods began to drive America's economy during this age of steel.0200

The industrial economy is going to help to provide the foundation.0211

And then yes, we will see consumer goods, the people will buy with their extra money that they have to spend,0218

will help to fuel the capitalist economy.0228

During this age of steel, steelmaking was revolutionized.0231

Henry Bessemer came up with this process, Bessemer process, the process of refining raw pig iron0236

and making steel by using the Bessemer converter by blowing lots of hot air through this mechanism that I have a picture of on the next slide,0243

the converter, and eventually creating this very malleable type of material that can be used to make steel.0256

This was a major game changer and is going to revolutionize the economy.0270

Andrew Carnegie is the one who is able to make a lot of money and embrace this converter, and make it work on a large scale.0276

He is able to fully exploit this invention by erecting a steel mill outside of Pittsburgh, Pennsylvania.0288

He becomes a very wealthy man, even though he came from humble beginnings.0297

He becomes the owner of the steel business and eventually, once he becomes extremely successful,0304

will sell his business to the U.S. Steel Corp., and it became the richest corporation in U.S. history up to that point.0309

Here is a picture of Andrew Carnegie and here is the famous Bessemer converter that will allow steel production to flourish.0318

Andrew Carnegie is known in U.S. history as one of the greatest rags to riches success stories.0332

He became one of the most successful captains of industry which is another term used to glorify these industrial capitalists,0339

who were very clever, hardworking, innovative, and instrumental in helping to build the U.S. economy.0351

Originally from Scotland, he needed to have a lot of investors to take this risk, and he was very successful,0360

even though there were setbacks from time to time as he was building his business.0369

He really took a risk that ended up delivering and being very successful.0376

He used the process of vertical integration which is a legal process,0383

whereby a company buys out all the factories of production, from the raw materials to the finished product.0388

This is going to become a very successful tactic that will help his business prosper.0395

He becomes extremely rich, $25,000,000 a year as his income continues to rise.0405

He is going to be very successful, his steel company was responsible for ¼ of the nation's steel production.0414

He had a huge impact and influence over this industry.0422

In many ways, not quite a complete monopoly but a substantial monopoly.0427

A huge control over 1/4 of the nation’s steel production.0433

When he sold his company, as I have mentioned previously, in 1901, to JP Morgan's U.S. Steel Corporation,0440

he pocketed, look at this, $500,000,000.0446

This is the largest personal commercial transaction ever, up to in this point in history.0449

He made it big and therefore became this famous captain of industry.0458

Now a lot of ideas influenced his way of thinking and his behavior, and he will believe that he needs to do positive things with his wealth.0464

But he also has very strong opinions regarding opportunities for others in society and our capitalist economy.0479

One idea that he embraced, and there were other thinkers who also believed in this ideology that I must highlight here.0491

One of them being Social Darwinism.0500

You may recognize the term Darwin in there.0503

Social Darwinism is going to draw from Charles Darwin's ideas regarding evolution, especially, the concept of survival of the fittest.0509

Before I get into the definition of these, Charles Darwin actually did not support how this idea was being applied.0522

Just for the record, this is a social adaptation of Darwin's ideas.0530

According to this ideology, it is taking Darwin’s ideas, applying it to society.0541

Survival of the fittest in society, that was accepted as an ideology.0547

Carnegie would apply this theory to business by saying that unrestricted business competition allowed the fittest to survive.0552

That this is extremely important, this is very much along the same lines as laissez-faire economics, that allow businesses to compete.0562

Allow the consumers to decide which company is successful by purchasing their goods0571

or buying their product or services, or whatever it maybe.0579

And that this is the way of nature that the fittest business will survive.0583

This could also be applied on an individual level.0590

This helps to justify that in capital society, there are some winners, there are some losers.0594

There some who are more fit than others, and this is just part of life, this is part of nature.0599

Herbert Spencer is also associated with this idea.0607

He advocated for Social Darwinism.0611

There is oftentimes a racist element to this as well.0615

That oftentimes, especially, tying in the Protestant work ethic that there are certain races that work harder0622

and they are more fit to survive in this competitive societies.0632

Something else to keep in mind.0636

Professor William Graham Sumner is also associated with this idea and support of this idea,0638

and believed that helping the poor was misguided as it interfered with the laws of nature.0645

He believed in a very laissez-faire approach that many of the other proponents of Social Darwinism agreed with.0652

Another idea that Carnegie believed in is a bit different than Social Darwinism.0661

It is called the Gospel of Wealth.0667

Carnegie did feel a responsibility to give back and not be completely greedy with all the millions of dollars0672

that he had acquired from becoming a successful businessman.0678

According to this idea, this was a doctrine that called on those who accumulated wealth to share their riches for the betterment of society.0682

And simply put, this is the idea of supporting philanthropic endeavors.0691

Carnegie will actually write a very influential essay called Wealth, in which he argues that the wealthy had to participate in philanthropy,0700

and it was ultimately their duty to invest in public institutions.0708

For instance, Carnegie will invest in libraries that he believes that that is how he can give back to society.0716

He did not believe in handouts, he did not believe that the government should redistribute the wealth.0724

He did believe that he could contribute to society by investing in philanthropic endeavors, in education, in libraries, etc.0731

Something to keep in mind.0745

I did forget to mention, it was on the bottom part of that slide, and we will see Rockefeller will also follow in that same vein0748

and also contribute quite a bit to several universities, like the University of Chicago, for instance.0756

He definitely invested his wealth in a lot of Protestant churches.0766

Moving on to railroads.0771

Railroads were extremely important in the post Reconstruction era.0774

It increased tremendously as the government helped to subsidize, underwrite the cost of railroad construction.0779

Although, it was primarily financed by free enterprise, private businesses and investors.0786

Corporations with limited liability gave railroads a boost as well.0793

In other words, the laws that helped industrial capitalism flourish based on limited liability,0801

made it very appealing for people to take a risk, to invest in these business ventures.0811

I will talk more about the details of limited liability in a bit.0818

I will expand, some of the most famous railroad promoters in the gilded age, in the post reconstruction era,0825

John Murray Forbes, Cornelius Vanderbilt of New York Central, and James Hill, these were all promoters and railroad tycoons.0833

The extent of railroad service expanded by 1900.0844

The efficiency improved and other aspects were improved upon as well, obviously, this look a large amount of capital to make it happen.0847

Investment banks like JP Morgan and Company, and Kuhn Loeb and Company, helped to forge better rates using interlocking directorates.0856

When the same directors were in competing companies, and ultimately0867

they will use monopolistic practices in their endeavors to become wealthy and to invest in these companies.0872

Here is also a map where you could see the extent of railroad development.0889

It was very sordid, fiercely competitive, and subject to boom and bust, as we saw with J. Gould's struggles in earlier times.0896

But by 1900, most of the U.S. ultimately had access to railroad service.0908

This was going to help the economy tremendously.0914

You can also see different time zones that were established as well, because in fact,0917

one of the problems that they did not foresee when some of the railroads were initially created,0923

if all of the clocks were not set properly, they actually would have collisions and huge accidents.0930

They eventually created these different time zones to avoid those problems.0939

More about corporations and corporate consolidation.0946

As I was saying, rapid economic growth required lots of capital, lots of seed money.0952

Businessmen borrowed huge sums, and when businesses occasionally failed, bank failures could result0957

which could have a negative effect on the economy.0964

Railroads had a huge impact on the economy when they went belly up.0967

This will actually be the case, for instance, in the panic of 1873,0972

that was very much tied to failures with the railroad business that happened from time to time.0977

This has a snowball effect, hurting the lower classes the most.0985

Because of scarcity of jobs that therefore they do not have money, in order to invest back into the economy.0990

Monopolies that were starting to emerge more and more because we did not have anti-trust laws at first,0999

created a class of very powerful man whose interests clashed with the rest of society.1006

This is going to cause tensions and many would view these captains of industry as robber barons or greedy monopolists1012

who were becoming extremely wealthy off the backs of the many laborers who are working very hard and being exploited,1025

and then all of a sudden being tossed away if the jobs were obliterated, they just get rid of them.1034

Inconsistent government policy, there was not a lot of leadership in terms of regulation,1046

very laissez-faire approach in general, except for tariff policies.1053

Government regulation and policies in general, very inconsistent, will further exacerbate situation1060

with vague wording of laws regarding antitrust laws.1067

There will be one law that is passed and I will explain this a little bit more in another slide, called the Sherman Antitrust act of 1890.1073

But the wording of it allowed for several loopholes where clever industrialists worked around the law and exploited the situation.1084

We will not see until the progressive era, especially during the time of Teddy Roosevelt, and even into the Wilson administration,1096

where we will start to see more stringent regulations being put in place, and more leadership,1106

in terms of antitrust regulation being put into place.1112

The big business model that was used by the railroad companies during this time,1120

spread to other industries as well, because it was profitable and successful.1124

This in general is known as corporate consolidation.1130

Businesses are becoming bigger, they are incorporating.1134

This is going to lead to the flourishing of corporations.1140

Here is a definition of what a corporation is.1143

A company or group of people that is authorized to act as a single entity.1146

And legally, yes, they are considered as single entity, legally a person and recognized as such in law.1152

This part, I will do a double take there.1160

But yes, this is something that has become extremely controversial in recent times.1166

What is the catch, why is the idea of a corporation so appealing?1173

This concept of limited liability is key.1179

The idea here is that investors only risk the amount of their investments, whatever they invest, that is all they can lose.1183

They cannot lose more than what they invest.1190

It is risky, you can lose what you invest but you will not lose more.1193

They are not liable for any debts that a corporation might accumulate beyond that.1198

And they can sell stock to the public as well which can be another moneymaking opportunity.1203

The public can make money off of that corporation, if it does well.1211

This type of business model is going to be very successful and will grow and flourish1216

and become the backbone of industrial capitalism, and obviously, still around today.1222

Railroads were at the forefront of these business models, these corporations.1230

Railroad combinations were dominated by a few individuals who became very powerful.1236

That does not mean that they were not criticised, and that eventually they will not be regulated, because they will be regulated in due time.1244

The achievements and excesses of these tycoons, as some of them who were extremely greedy and were ruthless,1253

and use cutthroat competition, and bullied other smaller companies to fold, ultimately, so they could dominate the industry.1260

Anyway, some of the major players, the famous Big Four that included Leland Stanford, Collis P. Huntington,1271

Mark Hopkins, Charles Crocker, and other major railroad tycoons like Cornelius Vanderbilt from New York Central,1279

James Hill, Jay Gould, Jim Fisk and others.1288

All these railroads tycoons symbolized much of the nation's great economic power, concentrated in individual hands.1292

Consolidate power and certainly there is a huge gap between that group of industrialists1300

and the majority of the working class people and middle class people.1306

That is going to cause a huge disparity.1313

A little bit more on Vanderbilt.1317

Cornelius Vanderbilt was a very successful railroad mogul who used ruthless methods to put his competition out of business.1320

He also died in 1877, many called him a robber baron because of his ruthless methods.1329

I have an image to go with this, of robber baron, a little bit later on.1341

But the idea is that you are stealing, you are squeezing the labor and you are becoming richer through monopolistic practices,1346

keeping your prices so low, forging rates, overcharging people, to become very wealthy at the expense of others.1362

That is the idea.1373

This is a term that was used in earlier times in history which I will expand upon later.1376

The rationale for modern capitalism vested squarely on the older ideology of individualism.1383

Survival of the fittest, and also the idea of being a self made man.1390

One has to look out for oneself and there is nothing wrong with competing.1396

If you need to step on someone else along the way, so be it, such as the nature of things.1400

But the idea that you can pull yourself up by your bootstraps to be a self made man, and rise up and work hard, and achieve that American dream.1408

This was all part of the ethos that Vanderbilt, as well as many other Americans who support these ideas will embrace.1419

Horacio Alger, on another note, ties in here too.1429

He wrote several novels using this theme that many viewed the concept of the self made man, however, as a myth.1435

Horacio Alger focused on young boys who were very unfortunate, that came from humble beginnings1442

but were able to rise above these difficult circumstances and become successful.1454

A lot of this mentality fed into this idea that you could make it rich if you wanted to, that the opportunities are there.1459

Vanderbilt, some loved him, some hated him, depending on the perspective.1471

Was he the captain of industry or was he a robber baron, you decide.1477

Anyway, for many, Vanderbilt's name became a synonym for enormous wealth and excessive corporate power.1482

As suggested in the next cartoon, showing him standing astride his empire and manipulating its parts.1490

You got to love the sideburns of these guys during this era.1498

But here you can see him being a puppet master having such control over a huge industry.1501

Other minor, the lesser moguls, and I forget who these are in particular but,1509

other participants in the railroad business that he is controlling the modern colossus of roads.1518

We will see that eventually, actually, in the year of 1877, ironically, this major railroad mogul1531

who used ruthless methods, also died in 1877.1542

In 1877, there was also a huge strike that broke out and this was very significant,1547

as it laid the foundation for other strikes to break out and for a large scale labor movement to break out,1552

at Haymarket and others as well.1561

In 1877, northern railroads that were still suffering from the financial panic of 1873 began cutting salaries and wages.1565

The cutbacks prompted strikes and violence with lasting consequences.1575

It made the Pennsylvania Railroad, the nation's largest railroad company, cut wages by 10%, then in June, by another 10%.1580

Other railroads followed.1590

Then on July 13, the Baltimore and Ohio line cut the wages of all employees, making more than a dollar a day by 10%.1592

That also slashed the workweek to 2 to 3 days.1600

40 disgruntled locomotive firemen walked off the job.1605

By the end of the day, workers blockaded freight trains near Baltimore.1608

Then, more and more violence starts to break out in Baltimore, Chicago, Kansas City, Pittsburgh, St. Louis, and San Francisco.1613

What did the government do?1624

Governors in Maryland, Pennsylvania, West Virginia, they called out the state militias.1626

What they see is that this is in restraint of trade.1635

They do not crackdown on the owners of the railroads, they crackdown on the workers for causing out this violence.1638

Because the railroad business was ground to a halt, this was viewed as in restraining trade.1647

This is hurting the economy, the government is going to crack down on them.1653

Even though, this will eventually be quelled, quashed by Federal troops, as well as we will see efforts by the state militias,1659

that this will set the foundation and give many workers the confidence to strike and to speak out,1668

and inspire them to take matters into their own hands and to have their voice heard.1680

After the strike, eventually we will see recovery came within a few months.1690

And the next 15 years, manufacturing output increased more than 150%.1695

The economy was booming.1703

Even though the U.S. was experiencing the great deflation when prices were decreasing,1705

businesses still make profits because of the growing economy.1710

Industrial capitalism was flourishing.1714

Another successful industrialist during this time was John D. Rockefeller, became extremely powerful.1718

He gained control of the oil industry, that many would say black gold, very profitable, still profitable today.1726

If you look at the top, richest companies in the world, you will actually see some of the oil companies1733

that were actually previously part of the Standard Oil Company, that will eventually be broken up.1740

But he basically had a monopoly of 90% or more of the oil refineries.1748

He had a monopoly over the oil industry.1754

He used horizontal integration as well as vertical.1758

But horizontal integration is considered illegal actually today.1763

But again, during the time of the gilded age, there was not a lot of regulation until the excesses started to come to a head.1767

Anyway, horizontal integration, when several smaller companies were combined into the same industry to form a larger one,1776

either by being bought out legally or by being destroyed through ruthless business practices1784

such as cutthroat competition or pooling agreements.1790

I will give you a good definition of a pooling agreement.1797

A pooling agreement, informal agreements which competitors would fix prices and share the market among themselves.1807

Cutthroat competition is when they are keeping the prices so low, that other smaller companies can not compete, so they go out of business.1817

Obviously, the bigger the business is, the more they can do that.1825

They had the ability to lower the prices.1828

Visually, so you can do a little comparison what is the difference between vertical and horizontal integration.1831

Here is an example of a horizontal integration, where big company, oil company, like such as Standard Oil, ultimately,1838

takes over all these other small independent refineries.1848

Vertical integration, and we will see Carnegie use this, as well as the meatpacking industry1855

which we will be talking about in the next slide.1863

When a company owns every kind of aspect of the process of production.1865

Here we go, here they own the cattle, they own the slaughterhouse, they own the refrigerator railroad cars, and how it is being transported.1874

They own where it is being warehoused, cold warehouses, the meatpacking plants, the delivery wagons.1881

And the actual places where the meat industries where they actually sell, the shops, in other words.1888

Just so you can visually see the difference between a vertical and horizontal integration.1900

Speaking of the meat industry, some very graphic pictures here.1906

I hope you are not a vegetarian, this maybe offensive to you.1912

Anyway, Gustavus Swift and Philip Armour's meatpacking business, they end up dominating the meatpacking industry.1916

Swift used centralized packing methods in Chicago, as I mentioned before, became a major hub for the meat industry.1925

And then, they developed the refrigerator cars to transport meat to keep it cold, keep it fresh, to keep it edible, to eastern cities.1932

This eventually became an oligopoly, when the market was dominated by a few.1942

There were other businesses as well.1952

Other industrialists dominated the sale of tobacco, farm machinery, sewing machines like Singer, cereals, Kellog’s, and Quaker oats.1955

Cartels were also formed, another form of business.1965

These are associations of producers that coordinate prices and production.1968

Industrialists also established trusts, companies that have a board of trustees and combined stocks into a new organization.1974

All of these types of new businesses and models will become extremely important.1982

Trusts are also formal trust certificates and there would be a board of trustees who would manage the former competitors to control the market and maximize profits for its members.1989

There were also some companies that used interlocking directorates, that were used by banks and investors2004

to gain seats on boards of competing corporations, in order to coordinate the management of them to manipulate the market and to increase profits.2013

Again, profits, profits, profits.2022

When, sometimes, these businesses go too far, we will see that many feel that there needs to be more oversight,2027

which will eventually lead to the first regulatory law being put in place.2037

The Sherman Antitrust Act of 1890.2042

This is the basic Federal antimonopoly law that forbids every contract combination or conspiracy in the restraint of trade or commerce.2045

It outlawed trusts and combinations in restraint of trade, and established fines for violators.2058

It became aware that some of these businesses were trying to circumvent the law, and forming these trusts,2065

that they were working in cahoots with each other and making huge profits at the expense of the many.2073

Why is this significant?2082

This law showed that Congressional government intervention in the free economy is essential to preserve competition.2083

In other words, if you only have a few companies that are dominating the market, is that truly competitive?2094

The more businesses that are competing, the better it is for the consumer.2101

Yet, great for the businessmen if they are dominating and making all the money, making all the profits,2108

but it is not good for the consumer.2114

The fewer corporations there are, then, the less competition there is.2116

This is where we are going to see the push for antitrust law.2125

Although this was a step in the right direction, one could say, in terms of regulating these big businesses and these monopolies,2131

we are going to see that it was undermined shortly after it was passed.2138

First of all, the Supreme Court held that manufacturing trust were not engaged in commerce,2144

and therefore, can be regulated only by the states.2149

This is going to be established in the court case, the U.S. vs. E.C. Knight case in 1895, known as the Sugar Case.2153

This will come up a bit later, I will talk about this more later on.2165

And two, the Supreme Court laid down the rule of reason by which not every combination in restraint of trade was illegal,2170

but only those unreasonably so.2177

And in fact, eventually, Standard Oil will be broken up in 1914, as it was actually declared to be a monopoly.2180

We will see actually in the Sugar Case that because it was considered manufacturing,2191

it is an 8-1 decision written by Chief Justice Melville Fuller, the court ruled that the government lacked power2208

under the constitution to enforce the Sherman act against the company's manufacturing operations.2215

Congress' powers are limited to those enumerated in the constitution.2222

The court argued in only one of those powers that given by the constitution, it is commerce clause,2226

allows Congress to regulate commerce among the several states.2232

Because this was considered sugar manufacturing, the government did not have right to regulate it.2239

The wording of the law was a bit vague and lawyers were able to exploit that, and expose its weakness.2247

We will see later that more laws will be passed and we will start to see more regulation being put into place.2257

But for the time being, not so much.2265

In fact, it will be the labor movement that will be cracked down upon, not the big businesses.2270

And course, the government wants to see industrial capitalism flourish.2275

Yes, laissez-faire, hands off approach, allow big businesses to flourish, build the infrastructure, help build our cities.2281

There is a lack of leadership during the post Reconstruction era, Rutherford B. Hayes, Garfield, Arthur, Cleveland, as well as Harrison.2292

We are not going to see a significant change until we get to the Roosevelt administration, Teddy Roosevelt, that is.2306

Although many Americans do embrace the growth of business and industrialization,2315

many became critical of postwar individualism, corruption, cruelty and deceit, and greed.2319

Many started to ask themselves, was there a price for becoming an industrial giant?2328

Writers like Walt Whitman and Mark Twain, expressed their concerns in their writing.2333

Twain's and Warner’s the Gilded Age, this is where the name will come from,2339

A Tale of Today, was a satire of corrupt political and social life in Washington, DC.2344

More and more, critics were starting to point out the corruption in government, the corruption in big business,2351

and other aspects of society that were very immoral, unfair, and corrupt.2359

A lot of artists, writers, thinkers, and so forth, will get more and more involved in speaking out2369

and expressing their distrust of what is happening out on society, in government.2377

Whitman’s Democratic Vistas discussed the materialism and selfish individualism of America's chromo civilization,2383

that in many ways, it was becoming very materialistic and phony, and that this was also leading to our moral decay as a nation.2392

The idea, just to have a visual here, under the glittery surface, something that it is gilded in gold.2411

The idea here is that, on the surface everything looks shiny and new, and sparkly and beautiful.2419

But underneath that surface, the U.S. also had poverty, unemployment, crass corruption, patronage,2425

segregation, discrimination, and other social tensions.2432

You can add pollution and all the other kind of negative effects of industry.2437

Here is a very critical cartoon, as you may be able to point out.2445

Rockefeller, on the collar here, he has the Supreme Court in the palm of his hand.2452

You can see money coming out of it.2458

Congress, you could see smoke from the oil, smokestacks coming out of the Congress.2460

The trust, the trust giants point of view.2470

What a funny little government, showing how much power these industrialists had over government,2475

that they could do whatever they wanted.2483

Along those same lines, the robber baron, history repeats itself.2488

The idea, the robber barons of the middle ages and the robber barons of today.2492

Here the landowners, those upper, the monarchs, and so forth, who would have to get tribute from the peasants.2498

Here we see in the gilded age during the 20th century, or I should say into the 19th century, farmers and workers,2511

you could see here this says citizen’s tax, wages, wages, wages, tax, etc.2525

That these people are struggling, where you could see the fat capitalist wore tariff and monopoly.2532

Trust, Trust, this is in legislation here.2538

That they were the ones who are in control, these robber barons.2544

This is a negative connotation that is very critical.2548

And yet another one, this is a very famous cartoon, the bosses of the senate.2553

Showing the huge influence, no pun intended, of these industrial capitalists.2558

This is a senate for the monopolists, by the monopolists, and for the monopolists.2566

Entrance for a monopolist.2572

People’s entrance, closed.2574

If you have a chance to pull this up, if you want to look at the detail, it is really well done.2578

Here it has steel, steel being trust, copper trust, Standard Oil, and coal, other major industrial companies.2583

And now we are moving on to the assessment section.2594

Here we go, Sumner, example one.2598

Competition, therefore, is the law of nature.2604

Nature is entirely neutral, she submits to him, notice the feminization as well.2608

who most energetically and resolute assails her, she grants her rewards to the fittest.2617

Therefore, without regard to other considerations of any kind, such as the system of nature.2625

If we do not like it, and if we try to amend it, there is one way in which we can do it.2632

We take from the better and give it to the worse.2637

Let it be understood that we cannot go outside this alternative.2640

Liberty, inequality, survival of the fittest.2644

Not liberty, equality, survival of the unfittest.2648

The former carry society forward and favors all its best members.2652

The latter carry society downward and favors all its worst members.2657

Sumner, the challenge of facts.2664

The idea is expressed in this excerpt most clearly show the influence of which of the following?2669

John Lax’s Second Treatise of Government.2675

Adam Smith's the Wealth of Nations.2677

Thomas Jefferson's Declaration of Independence.2680

Charles Darwin’s On the Origin of Species.2683

The answer.2691

Which of the following would Sumner likely support?2694

Socialist programs, laissez-faire, manifest destiny, or the Gospel of Wealth.2697

The answer.2706

Which of the following developments would be most consistent with the beliefs expressed in this excerpt?2710

Consolidation of wealth by an elite, expansion of women's rights, the Sherman antitrust act, the spread of organized labor.2715

The answer.2725

Next one, this is a cartoon.2731

Standard Oil Company, this is a rose, competitors, the American beauty rose can be produced2734

in all its splendor only by sacrificing the early buds that grow up around it.2741

John D. Rockefeller Jr., May 1905.2747

This is supposed to be a bunch of skulls, and a rose that has a skull on it and a knife here.2754

Which of the following groups would most likely support the sentiments behind this cartoon?2763

Social Darwinists, supporters of antitrust legislation, Unionists, supporters of the gospel of wealth.2769

The answer.2782

The kind of sentiments in this cartoon contributed most directly to which of the following?2786

The sale of Standard Oil to JP Morgan for $900,000,000, The breakup of Standard Oil into competing oil companies,2790

The replacement of kerosene lamps with an incandescent lights, The rise of the knights of labor or union.2798

The answer is the breakup of Standard Oil.2807

Yet another one Standard Oil.2815

Standard Oil was best presented as the antidote to social Darwinism, a way to bring about brotherhood to a fractious industry.2817

In a state of ungoverned competition, selfish individuals try to maximize their profits and thereby impoverish the entire industry.2827

What the American economy needed instead, were new cooperative forums, trust, pools, monopolies,2836

that would restrain grasping individuals for the general good, that it was an ingenious rationalization.2843

This is from a historian.2858

Using the excerpt, answer A, B, and C.2863

Briefly analyze the author’s conclusion that the Rockefeller’s defense of the Standard Oil trust2867

as the antidote to social Darwinism was an ingenious rationalization.2872

Here we go, Rockefeller's approach to the unrestraining markets was to control competition2882

through cooperative forums such as establishing his Standard Oil trust.2895

It was an ingenious rationalization according to the author, while Rockefeller criticized his competitors for their tactics.2900

He achieved survival of the fittest through a well organized trust, that controlled 90% of the oil market,2910

and then defended the monopoly as an antidote to social Darwinism.2917

Part 2, explain how two of the four operated, as forms of cooperation among businesses.2928

How about, I’m going to choose trust and monopolies.2945

Trust were formal trust certificates and a board of trustees would manage the former competitors2951

to control the market and maximize profits for its members.2958

This shows how they cooperated with one another.2964

Monopolies became prominent as businesses that use cutthroat competition to have exclusive2969

or total control of the market, such as oil or sugar production.2976

I do have to add one more to show the cooperation.2986

Monopolies would oftentimes use pooling agreements to work together with other companies,2990

so that they could maximize their profits.2999

I think that is what I would probably do to add to that because I realized I needed3003

to expand into the cooperation and not just simply define what monopoly means.3007

I think there, we are done with the lesson on the rise of industrial U.S.3016

Thank you for watching www.educator.com.3025